Green light for Tesco/Booker merger
The UK’s Competition and Markets Authority (CMA) has provisionally cleared supermarket Tesco’s purchase of the grocer retailer Booker.
In a statement issued today (14 November), CMA said that its panel of independent experts “found that Tesco as a retailer and Booker as a wholesaler – supplying to caterers, independent and symbol group retailers including Premier, Londis and Budgens – do not compete head-to-head in most of their activities”.
Simon Polito, Chair of the inquiry group, commented: “Our investigation has found that existing competition is sufficiently strong in both the wholesale and retail grocery sectors to ensure that the merger between Tesco and Booker will not lead to higher prices or a reduced service for supermarket and convenience shoppers.”
When Tesco set out its rationale for the merger earlier this year, the company said: “Optimising a joint national distribution system of Tesco and Booker is expected to lead to material benefits, including sharing parts of the fleet and expanding click and collect services. Tesco also anticipates savings in relation to final mile delivery to customers.”
